Israeli infrastructure fund Keystone has recently submitted a proposal to the Be’er Tuvia local planning and building committee for the construction of two new data centers. These data centers will be located on the site of the 451MW IPM natural gas power plant in Be’er Tuvia, Southern Israel. If approved, the data centers are expected to be operational by 2027, significantly contributing to the country’s growing digital infrastructure.
Keystone’s Investment Plans for Data Center Development
Keystone’s plan includes the development of two data centers, which will collectively provide 40MW of power. Each facility will occupy 15,000 sqm (161,458 sq ft) both above and below ground. The total construction cost for the two buildings is estimated at NIS 1.4 billion ($388.1 million). With each data center costing approximately NIS 700 million ($194 million), Keystone is poised to make a major investment in Israel’s data center market.
Strategic Location at the IPM Natural Gas Power Plant
The proposed data centers will be integrated into the existing infrastructure of the IPM natural gas power plant. This location was chosen for its reliable power supply, a critical factor for data center operations. The proximity to such a large-scale power generation facility ensures the data centers can meet the high energy demands of modern digital operations.
Approval Process and Timeline for Construction
Keystone anticipates that the approval process for the proposed data centers will take around five months. If the project is approved, the construction could begin shortly after, with an expected completion date of 2027. This aligns with Israel’s goal of significantly expanding its data center capacity by 2030.
Keystone’s Role in Israel’s Infrastructure Development
Founded in 2019, the Keystone Fund was established as part of the Israeli government’s strategy to boost investment in energy and digital infrastructure. By contributing to the expansion of Israel’s data center capacity, Keystone is helping meet the increasing demand for cloud services and digital solutions in the region. The proposed data centers will further cement Israel’s position as a regional hub for cloud and data services.
Israel’s Growing Data Center Market
Israel currently has 57 operational data centers, with 33 located in Tel Aviv. The Israeli government has set a goal of achieving 600-700MW of data center capacity by 2030, a target that Keystone’s planned facilities will help advance. Additionally, major international cloud providers such as Microsoft, AWS, and Google have already launched cloud regions in the country, contributing to the ongoing digital transformation.
Competition and Key Players in the Israeli Market
Several well-known data center providers are already operating in Israel, including ServerFarms, Edgeconnex, and Oracle. Oracle, for example, operates a dedicated cloud region in Israel and recently announced plans to open a second data center in the country. Microsoft also launched the Azure region in Israel in October 2023, marking a significant expansion of its services in the region.
FAQ Section
1. What is Keystone’s plan for the data centers in Be’er Tuvia?
Keystone plans to build two data centers at the site of the IPM natural gas power plant in Be’er Tuvia, Southern Israel, with a total capacity of 40MW. The facilities are expected to be operational by 2027.
2. Why was the IPM power plant chosen for the data centers?
The IPM power plant offers a reliable power supply, which is crucial for the operations of data centers. This strategic location ensures the data centers can meet the high energy demands of modern digital services.
3. What is the total investment in the project?
The total investment in the two data centers is estimated at NIS 1.4 billion ($388.1 million), with each data center costing NIS 700 million ($194 million).
4. How will the construction of these data centers impact Israel’s digital infrastructure?
The new data centers will contribute to Israel’s goal of achieving 600-700MW of data center capacity by 2030, supporting the growing demand for cloud services and digital infrastructure in the region.
5. Who are the other major players in the Israeli data center market?
Other significant players in Israel’s data center market include ServerFarms, Edgeconnex, Oracle, Microsoft, AWS, and Google, all of which have expanded their operations in the country in recent years.
